* How to extend a TARP? Convert the bank bailout loans into common equity.
* Gabriel Sherman: The rage of the privileged top 1% as it loses its privileges.
* Silicon Valley’s unemployment rate hits 11 percent.
“In particular, offer prices are highly influenced by the target’s 52-week high stock price. This price probably serves as a psychological anchor-a starting point from which actual bid prices do not sufficiently adjust to reflect only current information. A substantial fraction of bidders offer the target precisely its 52-week high, whether it was achieved recently or nearly a year ago. Bidders who pursue targets with 52-week highs that are well above their current prices experience more negative offer announcement effects; their investors perceive such bids as more likely to be overpaying. The probability of deal success is substantially and discontinuously increased by offering the target a price above its 52-week high, indicating that psychology-driven prices have real effects.”
* Nichola Groom: Recession is slowing water investment to a drip.
* Did Citi really earn $1.6 billion? Ummm… no.
* Harvard is hosting a forum on Massachusetts non-competes tomorrow night.
* Finally, Bill Rogers is among the runners this morning, for the first time in 10 years. A look back at when he broke an American record in 1979: